1. price of butter increased. price of margarine decreased.
Mr. Weiss
Unit 3
3. The movement in the graph shows that the quantity demanded of butter decreased because the
price of butter increased.
price of margarine decreased.
price of margarine increased.
d. price of butter decreased.

2. price of butter increased. price of margarine decreased.
Mr. Weiss
Unit 3
3. The movement in the graph shows that the quantity demanded of butter decreased because the
price of butter increased.
price of margarine decreased.
price of margarine increased.
d. price of butter decreased.

3. Mr. Weiss
Unit 3
According to this demand curve, if the price of t-shirts increases from $14 to $16, the quantity demanded will
fall from 600 to 400.
rise from 400 to 600.
fall from 400 to 200.
d. rise from 200 to 400.

4. Mr. Weiss
Unit 3
According to this demand curve, if the price of t-shirts increases from $14 to $16, the quantity demanded will
fall from 600 to 400.
rise from 400 to 600.
fall from 400 to 200.
d. rise from 200 to 400.

5. inputs become more expensive the number of firms decreases
Mr. Weiss
Unit 3
9. Which of the following choices could cause the movement shown in these graphs?
inputs become more expensive
the number of firms decreases
technology improves production
d. taxes increase

6. inputs become more expensive the number of firms decreases
Mr. Weiss
Unit 3
9. Which of the following choices could cause the movement shown in these graphs?
inputs become more expensive
the number of firms decreases
technology improves production
d. taxes increase

7. If you were to graph this supply schedule, the supply curve would
Mr. Weiss
Unit 3
If you were to graph this supply schedule, the supply curve would
be horizontal.
be vertical.
slope upward from left to right.
d. slope downward from left to right.
Supply Schedule for CDs
Price per CD Quantity supplied
(in millions) $ $ $ $ $
$ ,100

8. If you were to graph this supply schedule, the supply curve would
Mr. Weiss
Unit 3
If you were to graph this supply schedule, the supply curve would
be horizontal.
be vertical.
slope upward from left to right.
d. slope downward from left to right.
Supply Schedule for CDs
Price per CD Quantity supplied
(in millions) $ $ $ $ $
$ ,100

9. The quantity demanded of a product is affected by
Mr. Weiss
Unit 3
The quantity demanded of a product is affected by
output versus input.
surplus quantities.
price.
d. shortages.

10. The quantity demanded of a product is affected by
Mr. Weiss
Unit 3
The quantity demanded of a product is affected by
output versus input.
surplus quantities.
price.
d. shortages.

11. b. an increase in population
Mr. Weiss
Unit 3
18. Which of the following choices could cause the movement shown in the graph?
a. a decrease in income
b. an increase in population
c. a increase in the price of a substitute
d. an increase in the price of a complement

12. b. an increase in population
Mr. Weiss
Unit 3
18. Which of the following choices could cause the movement shown in the graph?
a. a decrease in income
b. an increase in population
c. a increase in the price of a substitute
d. an increase in the price of a complement

13. b. law of diminishing marginal utility. c. law of equilibrium.
Mr. Weiss
Unit 3
The principle that states that the more you have of something, the less satisfaction you will get from an additional unit is the
a. law of demand.
b. law of diminishing marginal utility.
c. law of equilibrium.
d. price elasticity.

14. b. law of diminishing marginal utility. c. law of equilibrium.
Mr. Weiss
Unit 3
The principle that states that the more you have of something, the less satisfaction you will get from an additional unit is the
a. law of demand.
b. law of diminishing marginal utility.
c. law of equilibrium.
d. price elasticity.

15. b. surplus. d. black market.
Mr. Weiss
Unit 3
If the price of a product is above its equilibrium price, the result is a
a. demand. c. shortage.
b. surplus. d. black market.

16. b. surplus. d. black market.
Mr. Weiss
Unit 3
If the price of a product is above its equilibrium price, the result is a
a. demand. c. shortage.
b. surplus. d. black market.

17. Where can a person look for help in starting a new business?
Mr. Weiss
Unit 3
Where can a person look for help in starting a new business?
a. the government and the Internet
b. the board of directors of a large corporation
c. banks and the Better Business Bureau
d. owners of similar businesses in the same area

18. Where can a person look for help in starting a new business?
Mr. Weiss
Unit 3
Where can a person look for help in starting a new business?
a. the government and the Internet
b. the board of directors of a large corporation
c. banks and the Better Business Bureau
d. owners of similar businesses in the same area

19. In a limited partnership, a. all partners are equal.
Mr. Weiss
Unit 3
In a limited partnership,
a. all partners are equal.
b. a bank limits the partnership's liability.
c. some partners bear no risk.
d. a general partner manages the business.

20. In a limited partnership, a. all partners are equal.
Mr. Weiss
Unit 3
In a limited partnership,
a. all partners are equal.
b. a bank limits the partnership's liability.
c. some partners bear no risk.
d. a general partner manages the business.

21. d. little borrowing power.
Mr. Weiss
Unit 3
A disadvantage of sole proprietorships and partnerships is that they have
no assets.
unlimited liability.
common stock.
d. little borrowing power.

22. d. little borrowing power.
Mr. Weiss
Unit 3
A disadvantage of sole proprietorships and partnerships is that they have
no assets.
unlimited liability.
common stock.
d. little borrowing power.

23. acting board of directors. joint venture. d. committee.
Mr. Weiss
Unit 3
A partnership set up for a specific purpose for a short period of time is known as a
joint stock company.
acting board of directors.
joint venture.
d. committee.

24. acting board of directors. joint venture. d. committee.
Mr. Weiss
Unit 3
A partnership set up for a specific purpose for a short period of time is known as a
joint stock company.
acting board of directors.
joint venture.
d. committee.

25. a. buy out similar firms in their industry.
Mr. Weiss
Unit 3
Interlocking directorates occur when the boards of directors of competing companies
a. buy out similar firms in their industry.
b. sell their companies to one another.
c. are composed of many of the same members.
d. obtain a monopoly in a particular industry.

26. a. buy out similar firms in their industry.
Mr. Weiss
Unit 3
Interlocking directorates occur when the boards of directors of competing companies
a. buy out similar firms in their industry.
b. sell their companies to one another.
c. are composed of many of the same members.
d. obtain a monopoly in a particular industry.

27. What is the main purpose of advertising in monopolistic competition?
Mr. Weiss
Unit 3
What is the main purpose of advertising in monopolistic competition?
a. lowering prices among competitors
b. informing consumers that there are no other choices
c. building brand loyalty
d. showing how similar a product is to its competitors

28. What is the main purpose of advertising in monopolistic competition?
Mr. Weiss
Unit 3
What is the main purpose of advertising in monopolistic competition?
a. lowering prices among competitors
b. informing consumers that there are no other choices
c. building brand loyalty
d. showing how similar a product is to its competitors

29. One advantage of an oligopoly is more stable prices.
Mr. Weiss
Unit 3
One advantage of an oligopoly is
more stable prices.
lower prices per product.
fewer product offerings.
d. better services.

30. One advantage of an oligopoly is more stable prices.
Mr. Weiss
Unit 3
One advantage of an oligopoly is
more stable prices.
lower prices per product.
fewer product offerings.
d. better services.

31. a. joint venture. c. conglomerate merger.
Mr. Weiss
Unit 3
When two or more companies in the same business combine into one corporation, the transaction is known as a
a. joint venture. c. conglomerate merger.
b. vertical merger. d. horizontal merger.

32. a. joint venture. c. conglomerate merger.
Mr. Weiss
Unit 3
When two or more companies in the same business combine into one corporation, the transaction is known as a
a. joint venture. c. conglomerate merger.
b. vertical merger. d. horizontal merger.

33. Mr. Weiss
Unit 3